What are Closing Cost?

Downpayment, closing costs, and cash to close are all related to each other, but have separate definitions!

Downpayment = the percentage of the purchase price that you are paying now (i.e 5% downpayment on a $100,000 purchase price = $5,000 down payment).

Closing Cost = the additional fees that are required to be paid in relation to the loan transaction. (i.e. Appraisal fee, Escrow fees, Recording fees, etc.)

Cash to Close = Down payment + closing cost = the Total dollar amount that you will bring to closing.

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